Shares of Albermarle Corp.
ALB,
rose 1.4% in premarket trading Wednesday, after the specialty chemical company announced cost-cutting actions to boost cash flow, due to changes market conditions, particularly in the lithium value chain. The company said it is looking to reduce costs by about $95 million a year, by cutting expenses and its workforce, with more than $50 million in savings expected to be realized in 2024. The company said it expects 2024 capital expenditures to fall to $1.6 billion to $1.8 billion from $2.1 billion in 2023. The company said as a result of the actions it was taking, it will record a charge in the first quarter, but it did not specify the amount. “The actions we are taking allow us to advance near-term growth and preserve future opportunities as we navigate the dynamics of our key end-markets,” said Chief Executive Kent Masters. The stock has dropped 25.7% over the past three months through Tuesday, while the S&P 500
SPX,
has gained 9%.
